_ caarter I ORGANIZATION AND NAGEMENT 1-1 Introduction The driving force behind every organization is its manage- ment team. Different teams operate in different ways. There is no universal accurate management to define the one that is best. Just the concept that explains why some operations were man- aged successfully in the past to suggest what can be done for future success. Some companies have shown steadiness if not spectacular growth for maintaining reputation of conservatism. Others have a dynamic reputations built on rapid growth with impressive earnings. Their reputations have demonstrated their divergent management philosophies converted into practice The organizational structure of small enterprise may be very simple. The owner is usually the manager. He has daily contact with all the people of his organization. He is the one who estab- lishes the policies. He assigns the job to be done, and follow up on the job for the purpose of direction and coordination. As his bigger, the problem of organization for group- company grows ‘ions become more complex. ing, supervising and serving operat The company may have the most modern plant and equip- ment, a highly skilled and experienced labor force, ample mate- rials and financial resources, yet become failure in its purpose of making profit. There may be many reasons and circum- stances responsible behind this failure, but the most frequent reason is poor management.PF JECT CONSTRUCTION MANAGEMENT 1-2 What is Organization ? Organization is a group of individuals who are cooperating willingly and effectively for a common goal. It is nothing more than the mechanism by which administration directs, coordi- nates and controls its business. It 1s indeed, the very foundation of administration. To be specific, organization seeks to know who is to do and what is to be done Organizations are structured to promote better management. However, it is the performance of the people who fill the posi- tions that determines the success of the enterprise and not the organizational design itself. A good executive may be able to secure good results with a poor organization, and a good organization may produce results from a poor executive. But the ideal set up is. a combination of a good organization and a good executive. When an organization is structurally ill designed, when it passes for a makeshift arrangement, administration is made dif- ficult and ineffective. On the other hand, when it is logical. clear-cut and streamlined, the paramount need of administration has been met. Apparently, there is no ideal organization designed to emu- late. A management structure is only a vehicle used to attain the objectives and goals of an institution, and therefore, must be realistic and responsive to the call for a change of those needs 1-3 The Structural Organization Structural organization is the formal arrangements that are established to coordinate all activities in order to implement a given strategy. Thus, structure reflects the anatomy of a firm through its focus on mechanisms and processes that link both vertically and horizontally the various parts of an organization 2ORGNIZATION AND. MANAGEMENT The Structural Elements of an Organization are: 1. Men. These are the different members of the organiza- tion starting from the very top of the last workman in the enterprise. 2. Materials. Represents the materials necessary in the dis- tribution of functions or in the attainment of its objec- tives 3. Machine. The tools necessary in producing its desired output. 4. Methods. The procedures and ways used in the course of its actions. 5. Money. The financial resources of the organization. The Major Elements of Organizational Structures are: 1. Distribution of functions. The functions to be per- formed, the groupings of functions, and the vertical and horizontal task relationships among functions 2. Vertical and horizontal authority relationships (who are the authority to do what) 3. Communication and decision Processes. The manner in which formal decisions are made and by whom. 4. Policies. The decision, rules or guidelines established. The common failure of management is its "failure to adopt its organizational structure, policies and procedures, to the growth in size and complexity of the enterprise. This is true particularly when the owner-manager has been successful with his small enterprise. Because of fear to change his way of doing things as his company grow larger, lest he lose the one ingredient that has made him successful, to which he is not at all sure which ingre- dient that may be. According to Peter Drucker, Traditional structures are no longer adequate for today’s complex organizations. A manage- Ment structure is a means of attaining the objectives and goalsPROJECT CONSTRUCTION MANAGEMENT of an institution. Thus, should be responsive to respect needs and changes on those needs. 1-4 Principles of Good Organization Business organization has conditions peculiar to itself. A set of rules cannot be laid down that would be applicable to organization of all enterprises. However, certain underlying principles can be given and among them are: 1. 4. Functionalism. The organization should b Principle of Objective. A clear and complete definition of the objective must be known. Any business concern or any individual must adhere to a definite purpose or aim For example, if the aim is to make plans and construct a project, then, the entire organization must be built with that idea, and those in the company must think and act in terms of the quality of work. The objective serves as the guide to future planning and action. It integrates policies, projects, and programs. It enables everybody to act con- sistently according to a common goal. Analysis. A sound business judgment attempts to build an organization through full knowledge of the require- ments of the business. There should be a study as to whether the project could be finished at the right time and at the right price the client will be able to pay. Simplicity. The simplest organization that will serve to attain the desired objective is considered the best. All ac- tivities which are not absolutely necessary, should be eliminated, and those retained should be handled in the simplest practical way. Creation of position should be based on paramount necessity and all activities which do not pay in terms of pesos and centavos, should be elimi- nated. 3 e built aroundORGANIZATION AND MANAGEMENT the main functions of the business and not around the in- dividuals. A function is a normal or characteristic way of doing a task that stands out distinctively by itself. The na- ture of the business determines the main function of the business. The nature is the proper basis for organization to be established. If an organization of any concern is built around the functions, proper distribution of work could easily be done, thus, eliminating any one man to become so powerful and so dependable upon to be indis- pensable. Departmentalization. In big organization, the scope of operation can be very broad, necessitating departmentali- zation to achieve a smoother flow of operations. Depart- mentalization can be through functions, products, loca- tion, or by projects of the organization. Centralization of Authority and Responsibility. In every organization there should be centralized executive control or command authority. This is necessary in order to have authority and responsibility definitely fixed. When there is unity of command, every person knows what he can perform within his scope of authority, knows the things for which he is responsible of, and also whom to report to and consult in case of problems or doubts. Limited Span of Control. The number of subordinates an executive can manage effectively. 1-5 Organization and Business Business had been defined as an organization of people with varied skills, which uses capital and talents to produce goods or services, which can be sold to others of more than their costs, or it may be considered as; the system through which economic activity was organized by those who seek to make profit, 5PROJECT CONSTRUCTION MANAGEMENT Fundamentally. most construction enterprises are selling the time of their workers, their machineries, plant, equipment and money. The efficient use of the time and these assets will de- termine the amount of profit to be realized, which is the primary goal of investing efforts and capital in construction business. To be effective. human activities have to be coordinated. Ef- ficient coordination requires much more than an organizational framework. At the top of the foundation is coordination. This is the attribute that integrates all the elements of an organization into an operating unity. Experienced proved that higher accomplishment is depend- ent upon the interest and willing cooperation of both the project supervisor and the workers 1-6 What is Management ? Management is a process. It is the process of directing and facilitating the work of people who are organized for a common purpose. It is the process of combining the efforts and resources of individuals with a common interest to achieve a desired ob- jective. Management is a function. It is the function of getting things done through the efforts of others. It is the application of authority and the assumption of responsibility. It is an art, the art of handling people. Management properly applied, gives individuals in the same organization the feeling of security, of recognition, of opportunity and of belonging. 1-7 Management Concept Management to be effective must be systematic Things can be done better by means of plan of action. The plan is @ steP by step outline of what is to be done and who does what. Good 6 ——ORGANIZATION AND MANAGEMENT decisions and actions are based on the systematic application of sound principles of complete and reliable facts, and of good practices. When management is systematic, there can be no room for personalities, prejudices, and unfair judgment Management to be successful must be scientific. Scientific management has done more to advance and win the status of mankind today than has any other single factor. By the applica- tion of the scientific method to the study and analysis of the op- erations of a particular job, men have discovered the best known methods of performing the operation. Since there is always a better way of doing a job, men will keep on experimenting and analyzing the different factors affecting their work in search of the one best way. They will develop better methods of increas- ing production without increasing work time and operating cost. Management must be humanistic. Where machine may have standard of efficiency and be set to run at a given speed, human beings, whether manager or workers, cannot be so easily regulated to a pre determined point of accomplishment. Human being preferably should be led by goals they accept as justifi- able, worthy, and fair to all concerned. This led us to human relations. It has been proven many times in the past that applica- tion of good human relations “pays off” through cooperation and coordination leading towards greater accomplishment. 1-8 Management Structures The primary objective of management structure is to facili- tate the coordination and control over the activities of the com- pany. No two.companies are identical. Thus, each company should be studied in terms of its purpose, size and the nature of its business. In any sizable organization, there should be delega- tion of responsibility because: 1, It is physically impossible for one person to control effec- tively all the works of a large organization through per- 7PROJECT CONSTRUCT JON MANAGEMENT The st rely On other + with it/ The manager mu: onl be responsible for designated phases of the work. \ ‘on possesses the skills necessary to guide person- > vivhhe highly specialized activities in a modern construc- tion business. An expert on every line of activities must be responsible of such department. An architect assumed the responsibility of planning works, Engineer for civil works, Electrical engineer for electrical work etc Top management should segregate these highly specialized activities and get someone with the knowledge and skill to co- ordinate and be responsible for them. The principles of delega- tion of authority must extend all the way through the company from the president and general manager to the supervisors foreman, down to the utility workers The line of responsibility must be fixed Everyone in the company should know to whom they are responsible Line re- sponsibility which are fringy or not distinct, will only lead to grumbling and misunderstanding throughout the personnel of the organization. For instance, the foreman will order a certain work to be performed in one way and another supervisor will order the other way or sometimes stop the operations. This will result to confusion and dissatisfaction of the workers and the foreman. The result is inefficiency of the work On the other hand, a supervisor who cannot be sure of the bounds of his responsibility lives in fear of the possibility that he was either meddling with someone else business or neglect- ing a responsibility of which he is not aware of. The line of Tesponsibility works in two ways: 1. From the executive to the under his jurisdiction and 2. From the workers to tho: Supervisor down to the workers conversely, s¢ who are in authority over him. 6ORGANIZATION AND MANAGEMENT The line of authority must be kept clear at all times in order to facilitate the ready flow of communications and control 1-9 Management Control Control as a verb is defined by Webster’s new college dic- tionary as “fo check or regulate... to keep within limits.” Yet. managerial control carries with it a much broader interpretation to apply: not only to check nor command, but also the whip. Not only to regulate, but also to stimulate. Control also includes activities that require restrictive or cor- rective action. For instance, matters like excessive labor cost. undue equipment failure or disproportionate fuel and mainte- nance costs and the like are points that requires management action and will be accomplished only if management is aware that the conditions exist. Control however, only lead up to spe- cific management action specifying the necessity for action and variation from routine. The success or failure of any enterprise depends greatly upon the manager. To him, the most effective tool for success is man- agement or executive control. This involves setting overall ob- jective or measurements to serve as a yardstick for allocating resources and for evaluating performance. To have effective control, the manager must know by heart ns why his business or enterprise exists. He must have of the needs of the business. Thus, a manager lanner and a good organizer. A long range force for executive control. It is an abil- anticipate the problems that block the the reaso1 a clear perception must be a good pla planning is the creative ity to set the mark and way to planned results. id be a good organizer. The organization lanager shoul c : i ae we framework for delegating authority and fixing re- sponsibility from a higher toa lower executive level. Thus, inhn PROJECT CONSTRUCTION MANAGEMENT e er should stress on get. developing his organization, the manag ting the right men for the right job. He must concentrate on how to get the jobs done and on how to prevent abuse and waste of resources. Effective Communication System ‘An effective communication system is an important ele- ment of executive control. Under this system, adequate and reli- able data are collected and disseminated to the proper persons and units at the right time. To the manager, information has four purposes to serve. 1. It must answer the questions what are we going to do? 2. How well are we doing? 3. How can we do better? 4. Does it serve as an aid to coordination? 1-10 The Manager The manager as executive is the most difficult and with the highest degree of responsibility. The nature of his job is varied from the simplest to the most complicated one. Being the bridge between the board of directors and stockholders or between top management and the rest of the agency personnel or between the agency itself and the general public, he is always blamed for mismanagement, and yet, he is oftentimes not praised for his success. But his job is always in his mind no matter where he is. Managers who are not prepared for the difficult task of man- agement, break down earlier than is expected, not only because of pressure of work but also because of mental torture caused by problems they met and have to solve. Quality of an Effective Manager An effective manayer must have the following qualities 10ORGANIZATION AND MANAGEMENT He studies, analyzes and dissects his job 2. He knows how to delegate the administrative details of his job 3. He is willing to delegate to and share with his subordi- nates the credit of a job well done. 4. He trains and develops his men to prepare them to assume delegated work. He knows how to control and plan his time. 6. He institutes controls for effective performance. w 1-11 Executive Functions Managers do not do the actual work of an organization. His specific functions are: 1. to Plan 3. to Direct 2. to Organize 4. to Control Planning. Is the job of making things happen that would otherwise not occur. It is an intellectual process, the conscious determination and direction of action. Planning is economic and essential control necessary because of uncertainty and change. Plans may be classified as: Objective of the enterprise 1 2. Policies 3. Procedures 4, Budget and 5. Programs. «zing. A good organizational structure does not guar- fess ood | oe oman, but a poor one makes good perform- ance impossible, either the caliber of the individual managers notwithstanding. Improving the organization will always im- prove performance. In short, a good organization Sas is necessary though not a sufficient condition for good perform- anceORGANIZATION AND MANAGEMENT Directing. Directing is guiding and overseeing subordi- nates. One can plan, organize and staff, but until subordinates are taught what to do and told to get on with the job, nothing gets done. In directing, two processes enter the picture; leadership and coordination. Leadership and coordination are intimately bound together. Without effective leadership, coordination cannot be achieved. Leadership has been defined as; the process by which an executive imaginatively directs, guides or influences the work of others in choosing and attaining particular ends. Leadership is more than excellence in administrative performance. Coordination is the process whereby an executive develops an orderly pattern of group effort among the subordinates, and secures unity of action in the pursuit of common purpose. How Can Executives Coordinate Efforts in their Organization? 1. Clarifying authority and responsibility 2. Careful checking and observation 3. Facilitating effective communication 4. Utilizing leadership skills Control. Control has been defined as the process by which an executive gets the performance of his subordinates to corre- spond as closely as possible to chosen plans, orders, objectives, or policies. Control calls for the evaluation of results, comparison of those with established standards, and the taking of measures to correct discrepancies that appear. The span of control refers to still another principle of organi- zation. The number of persons reporting directly to one execu- 12ORGANIZATION AND MANAGEMENT tive should be limited because, the larger the number, the more difficult it is to supervise and coordinate them effectively. The number that can be supervised effectively depends on such factors as the nature of the delegated responsibilities. the abilities of the subordinates and the assistance available to him by a staff. Common practices are 4 to 8 for the top levels and 8- 15 for the bottom levels Policies and Procedures In planning, the critical task is the formulation of policies. Policies are general statements, which guide or channel the thinking and action of members of an organization. Procedures are reflection of policy. It involves the selection of a course of action and applied to future activities. Procedures also detailed the manner in which a certain activity must be ac- complished. 1-12 Executive Leadership Executive Leadership is the bridge between objective and result, Human progress is the crowning glory of success. Suc- cess is the result of good management. And management is the effective, efficient and economical utilization of the resources of man, money, materials, machine, methods and memoranda. The responsibility for management is vested primarily on the manager. He is the fellow who gets things done through the ef- forts of others. He is the fellow at the top of the organizational pyramid. He is the leader of the organization, and a good leader usually makes a good manager. ‘As a leader, the manager should be an exemplar of good per- sonal appearance, pleasant mannerisms, friendliness, cheerful- 13PROJECT CONSTRUCTION MANAGEMENT ness, and good health so that he can command respect among, his subordinates. He must be a paragon of honesty. intelligence, enthusiasm. aggressiveness, loyalty. vision, initiative, persever- ance. and decisiveness so as to establish employee's confidence in him, He should possess adaptability, understanding, patience and self control. so that he will be able to see the two sides of any problem brought to him and thus, exercising fairness to all. He must have a good judgment and leadership ability. In short, the manager must not be a boss but a leader. Leadership is the ability to motivate subordinates and other people toward the achievement’ of organizational objectives. The ability to influence, persuade and motivate followers is based largely upon the perceived power of the leader A leader, who desires to serve, leads by example. He must Possess at least a certain degree of imagination and vision, He must be able to think ahead to visualize and to plan beyond the immediate present. A leader must have a goal, which is practical and right. With such qualities, he will certainly command the respect of others and be a true leader, but the best training in management is ac- tual management. New Concept of Leadership To achieve objective, a leader must use the autocratic style of leadership when he is the expert or when there is an emer- gency situations where quick and decisive actions appears to be necessary. However, when each of his people is capable of functioning independently, he must use the democratic or par- ticipatory kind of leadership. The new concept of leadership today is a matter of service, not control. Ideal leadership is changing fast where the age of 14 =t ORGANIZATION AND MANAGEMENT order from above, obedience below, has come to an end. People resist orders and dictates what they believe is just and fair unto them. The ideal leadership now is to aid communication and create a sense of unity, enthusiasm and cooperation among the members of a team Based from theories and researches. there is certainly no best leader style or theory of leadership. The choice of the lead- ership style to employ must take into account the company’s objectives, the company policies and the organizational climate. Definitely, the best leadership style to use is the one that consider the internal environment existing in the organization. Example of an Ideal Leadership Historical record shows that the Iroquois League. a confed- eration of five indigenous nations in what is now the United States, adopted a constitution known as Great Law of Peace, which spelled out the qualities it required of leaders. The chief of the league of five nations shall be the mentor of the people at all time. The thickness of their skin shall be seven layers. Mean- ing. they shall be proof against anger. Their hearts shall be full of peace and goodwill. They shall carry out their duty with end- less patience. Their firmness shall be tempered with tenderness for their people. Neither anger nor fury shall find lodging in their minds. And all their words and actions shall be marked by calm deliberation According to one historian, when the native Americans met a group, it was immediately clear who was the leader. Why? It was certainly not because he was the one putting on the biggest and strongest voice. In fact, the chief was the most unassuming and modest in manner. One modem leader the former Swedish Prime Minister Ing- var Carlson, even after he became prime minister, he continued 15be te PROJECT CONSTRUCTION MANAGEMENT his habit of riding a bus to work, No matter ew bree he might be, he refused to ride taxis or his official cars. nent © en- tertained guests, Mr. Carlson would contact first ine accounting department in advance to obtain authorization for expenditures, One of Mr. Carlson’s guiding principles is that; “a political leader should never ask others to do what he himself was unable to do.” Like Mr. Carlson, leaders should reflect those who are most deeply committed to the principles they stand for: Commitment implies ‘Sincerity and deep sense of responsibil- ity, which enables us to tap our courage, wisdom and energy. It is most unfair to expect others to work for goals that you as a leader are not making absolute effort to realize. To be strict with yourself, but gentle with others, is the spirit of a true leader, but part of this strictness is to keep striving to grow and improve. Good leader focuses on contribution. He looks forward to attain the goal. He ask what can I contribute that will signifi- cantly push the performance of the organization I served? His stress is on responsibility To ask what can I contribute is to look for the unused poten- tial in the job. Leaders who do not ask themselves of these ques- tions. is not only likely to aim too low. but likely to aim at the wrong things . Generally speaking. there are two approaches to being a leader. Whether in politics. or within a company or organiza- tion, one is to make the people wise, and the other is to keep them ignorant. The difference: is the difference between leader- ship and dictatorship Good leaders have one thing in common, practices and eX Perience. Effectiveness must bea habit, that is. a complex of 16ORGANIZATION AND MANAGEMENT practices Remember that practices can be learned. Practices is simple, that even a young boy has no difficulty in understanding a practice. But practices are always exceedingly hard to do well. They have to be acquired as well as leamed. The multiplication of numbers that is repeated until 3 x 3 is equal 9, has become unthinking conditioned reflex and ingrained habit. There is no reason why anyone with normal endowment from God, should not acquire competence in any practice. Mas- tery might well elude him for this one might need special tal- ents. But what is needed in effectiveness is competence. 1-13 Delegation of Authority Delegation of authority is the key to effective management. In order to have control, the manager must have authority. Au- thority is the power of an administrator to delegate functions to the next ranking executive, who in turn transmit it to the em- ployees who are charged with the actual operations. Authority however, should have a definite limitation to avoid confusion. The authority vested upon an executive should pref- hould be interpreted clearly to avoid erably be in writing. It s misunderstanding between the boss and the subordinates When a work is given, it must be-within the paths of author- ity. But before giving an order, it should be determined first if it is necessary, properly interpreted, and whether the proper au- thority is behind it. f a task to a subordinate is a manifestation of lence towards the ability of a subordinate. It e an added responsibility and authority, Is for growth and improvement However, ined and prepared for the job before the Otherwise, he may refuse a dele- Delegation 0! faith and confid gives the subordinat which will be his tool subordinates must be train additional assignment is given. 7i, | PROJECT CONSTRUCTION MANAGEMENT gated work if he believes that he is not prepared for the new task. Justifiable praise and commendation should be given the deputy for a work well done. Recognition is a basic human de- sire and is an incentive for further achievement. This is one of the means for executive development and or building morale. 1-14 Responsibility and Authority Defined One famous professor on administration defines responsibil- ity as “Hell” without authority. There are people who constantly seek for authority, but evade responsibility. This is called buck passing. Authority and responsibility must go together. But au- thority cannot be delegated completely. It can only be shared. The president may delegate any or part of his authority be- cause he must share if he expect to get the necessary counsel of experienced or specialists workers in the company. On the other hand, advises which are feed by persons who do not share in the responsibility is of questionable value. Yet, even with the aid of responsible consultants, there is always that element of risk in decisions. The true experts will be the first to admit the possibility of error in his recommenda- tions, Who will assume the risk? And who will make the deci- sions? Probably the best answer is that; decisions should result from the pooling of judgment of those who share in the respon- sibility and authority under the situation in question. The presi- dent or manager is still held responsible for the action and li- abilities of the company, including the cause of strikes due to labor disputes. 1-15 Personnel Coordination ‘The company organization is also dependent upon the special 18ORGANIZATION AND MANAGEMENT abilities and skills of personnel to perform the work. This is true particularly in the establishment of leaders, supervisors and foremen. Two factors are significant. 1. The need for close supervisions as judged by the skill of the workers and the difficulty of the operations 2. The availability of experienced and trust worthy person- nel capable of acting in supervisory capacity. The shortage of people who are capable of leadership and supervision of other is one of the biggest difficulties encoun- tered by companies, and this may be due to: 1. Lack of incentive in the supervisory positions. 2. Inadequate or ineffective recruitment of those possessing potential leadership ability. 3. Insufficient training of present and potential supervisory personnel. Virtually, project construction bring together people with diverse knowledge and skills. Most of the workers associate with the project for less than its work duration. Some go from. one project to another as their services is needed while others are on loan either on a full time or part time basis from their regular job. This is usually the case when special Projects exists within the framework of a more traditional organizations. People with special knowledge and abilities are selected to work on special project. Some workers on the other hand, are not so eager to join a project because it may mean working for two bosses, disruption of friendship and daily routine and risk- ing he possibility of being replaced on the project job. Aside from these, there is a fear of being connected with unsuccessful project which might affect adversely their career advancement. On several instances, when a project is phased out and the pro- ject team disbanded, team members tend to drift away from the organization for lack of new project and the difficulty is return- ing back to the former jobs.PROJECT CONSTRUCTION MANAGEMENT Some workers want to associate with more dynamic enyi- ronments. They like challenges of working under pressure and solving new problems. To them, project offers an opportunity to meet new people and increasing future opportunities specially if the project is a successful one. And being connected with the project they gained status among fellow workers aside from the increased of their tag price: Finally, working on projects in- spires a team spirit, increasing their morale and motivation to achieve successful completion of project goals. 1-16 Scientific Management The root of management science extend to the work of Fre- derick W. Taylor, who propounded the machine model or scien- tific or task management theory with the following peculiarities: 1. Division of labor and specialization 2. Unity of command and centralization of decision making 3. One way authority 4. Narrow span of control. The origin of management science, have started from the works of Frederick W. Taylor, an Engineer who was accredited the title of father of scientific management. Some of those early contributors to scientific management principles were graduates in engineering schools but many were practitioners who make industry a working knowledge of engineering principles. Asso- ciated with Taylor in those early years were, Carl G. Barth, . Henry L. Gantt, Stanford E. Thomson and many others. Barth introduced to the world the use of research mathemat- ics, which he merged with his knowledge of machine tools. Gantt contributed to the recognition of worker psychology, the development of bonus plan, and the charts used in production scheduling. Engineering thus come to be closely associated with the management of various enterprises. Out of this, Industrial Engineering was bom. Today, it is a descriptive of the work of 20ORGANIZATION AND MANAGEMENT functional staff responsible for activities such as. Incentive standard Methods analysis Quality control Production control Material handling wren The obvious strength of management science is its objective, quantitative treatment of management problems The treatment is characterized by: 1. A statement of the problem in a mathematical form. 2. Reliance on measurable quantities such as costs and in- come 3. Use of computers 4. Dedication to rational decision making Business capital have long accepted the benefits of engineer- ing expertise in connection with construction and production operations. ‘They have started to call engineering to supply the same scientific approach to problems in: 1. Organization 2. Financing 3. Office and field operations 4. Inventory and control and in fact almost all phases of the business History has proven that Engineers were effective executives. This is due to their inherent analytical mind, creativeness, con- ceptual, and mathematical perceptions as their jumping board in rendering effective decisions. By nature, Engineers are not talker, just doers. As effective executive, engineers do not make many decisions because a decision on principle does not as a tule take longer than a decision on symptoms and expediency. 2| PROJECT CONSTRUCTION MANAGEMENT ‘As an effective executive, Engineer do not need to make many decisions because he solves generic situations through a rule and policy. He can handle most events as cases under the rule. That is by adaptation Engineers as executive are not paid for doing things they like to do. They are paid for getting the right things done and most of all in their specific task, that is, the making of right decisions, To be effective is the job of the executive. He is first of all expected to get the right things done. And this is simply that he is expected to be effective. To be effective executive, Engineers has five habits in mind 1, They know where their time goes. They work systemati- cally at managing the little of their time 2. They focus on outward contribution. They gear their ef- forts to results rather than to work. 3. They build on strengths. They do not build on weakness They do not start out with the things they cannot do. 4. They concentrate on a few major areas where superior performance will produce outstanding results. They force themselves to set priorities. They have no choice but to do first thing first and second things not at all 5. Engineers finally make effective decisions. They know that this is above all a matter of system of the right steps in the right sequence. And they know that to make many decisions fast means to make the wrong decisions. What is needed are few, but fundamental decisions. Over the many years since scientific management was in- troduced, specialization has certainly raised efficiency and productivity, although in some other ways it has also created problems. However, in recent years, it has been proven that better technology alone cannot produce all the needed solu- tions. More reliance must be placed on people. 22 a>ORGANIZATION AND MANAGEMENT Work Simplifications Rank and file employees are frequently called upon to con- tribute. The term simplification is often used to designate the ” cooperative project. Workers acceptance of methods improve- Ment activities is essential to any program, if their enthusiastic participation can be obtained, results and savings will be felt. Companies, who fail to call on employees and workers for improvements, overlook the fact that the persons who spend eight hours or more a day on a job is perhaps the one best in- formed about and most interested in the job and how it is per- formed. Frequently, he can suggest changes that would elude even the trained method person. The more people in the organi- zation thinking about new methods and techniques, is the better. 1-17 Humanistic Management In this topic, the management philosophy adopted by Kono- suke Matsushita, the founder of Panasonic Corporation of Japan was presented to know the secret of his business success. Mr. Matsushita was asked; what is the key, to the success of your management? Matsushita answered, there is no magic phrase that will answer your question, our management is an- chored on the following principles: We have a good staff. Our policies were clear. We upheld an ideal to be striven for. Our chosen field of business was appropriate at the time. We did not allow factions to form within our company We regarded the company as a public institution. ‘We followed a policy of open management. We worked towards a system of management by all employees. SI AwAYN 23PROJECT CONSTRUCTION MANAGEMENT The first and the most important requirement for a good management according to Matsushita, is to clarify the manage- ment philosophy, goals, and ideals of the company. The man- ager of the company must be clear in his own mind about what the purpose of his company is, what its ideals are, how he in- tends to conduct business and what concrete goals he should establish for it in the ensuing years. Sound business development is dependent in having such a well thought out management plan for without such a plan one cannot use personnel, technology and capital to their full poten- tial Humanistic management is universally applicable. Employ- ees who are given definite goals will clearly understand what they should concentrate their talents on. They know what is ex- pected and the standards by which they will be measured. Nothing is more frustrating for a man not to have his efforts properly evaluated. The way to motivate employees to work hard is to present them with a definite goal and indicate pre- cisely where their efforts should be directed. According to Matsushita, to have a clear management phi- losophy is not enough. Good management requires something more a vision or ideal of what the company is and should be. In addition to a short-term view of the company, it is important for good manager to have well defined long-range goals for the company; what should it be like in the distant future? What con- tributions should it make to society? What is its ultimate role? In other words, the manager must have a vision of what the company should be 100 or even 200 years hence When an enterprise has ideals which command respect, and is acceptable by all, each employee tries to improve himself and bring his talents into full play. To Matsushita, there are three management philosophies, which are indispensable factors in the success of enterprise management, namely: 24ORGANIZATION AND MANAGEMENT 1. A goal 2. An ideal 3. A vision . If these ideas are perverted to serve selfish ends, oppose jus- tice and truth, and destroy the peace and prosperity of society, the company will quickly be faced with ruin and its managers chastised. The next key to success is to think of an enterprise as a pub- lic institution. Even though they be private enterprises in the formal legal sense, nonetheless all of them should be considered to be essentially public since the objective for any enterprise is the contribution it makes to improve the life of the community. The third key to success is open management. A system of open management does not give the manager any opportunity to do something dishonest with impunity, for he cannot hide his deeds. Therefore, it serves as a self-control mechanism for man- agers who are after all, still humans. Any manager can do something dishonest if he has in mind to do so. Whether done unconsciously or deliberately, the result is the same, and the employees will never be able to forgive or respect him. Confidence between him and his employees will be lost ahd they will no longer follow his orders, as they should if the company is to run efficiently. A dedicated and morally upright attitude of a manager sends a persuasive message to his employees. They too must be care- ful to act properly at all times Open management not only en- courages employees to work harder but also makes the manager and his employees realize that dishonest acts are absolutely in- excusable. The forth key to success is the collective wisdom of all its employees. There are distinguished managers who always think 23| PROJECT CONSTRUCTION MANAGEMENT things out for and by themselves, decide by themselves, and act by themselves. They may be dramatically successful for a while, but in the long-term view, such di ictatorial managers fing difficulty in being truly successful in management. A dictatorial manager simply does no feel the need for tal- ented employees with decision making skills, and so good hu- man resources do not gather about him. He will not take time to develop the talents of any employee who do happen to be under him. He wants people to simply follow his orders nothing more. No matter how much education and kn may have, or however great his ability may single individual whose wisdom has very judges things solely in terms of his limi knowledge, he will never unders lems facing him or the true nature owledge a manager be, he is still only a finite bounds. If he ited perception and tand the realities of the prob- of management. Today, in an age of high technology with its rapid change and huge masses of data to be Processed, it is quite impossible for even a superior manager to do an ad lequate job solely on the basis of his limited individual capacities To collect wisdom by consulting with one’s employees is a good way to increase employee morale and motivation. People always feel happy when they are given an opportunity to ex- Press their opinions to others and they feel even more pleased and proud when it is a manager or superior who is soliciting their opinion. A manager cannot function as a manager unless he can as- sess data calmly and make successful projections. He cannot allow himself to be influenced by his own interests or personal feelings. Managers as human being have prejudices and precon- ceived ideas and tend to adhere to one way of thinking out of habit. 26:ORGANIZATION AND MANAGEMENT Five Key Points to Success in Enterprise Management 1. To have a clear management philosophy, clear goals, and definite ideal. 2. To manage a company with the full realization that every enterprise is a public enterprise. To practice open management To collect the wisdom of the many To try your best to acquire an unflappable and su- premely adaptable mind to enable you to see things as they actually are without clinging to preconceived no- tions Any According to Konosuke Matsushita, for a corporation to achieve its objective, it must above all else, succeed in cultivat- ing its human resources. 1. People-first business philosophy. Make people before it make products. 2. Every employee must learn to think like a business man- ager, and every employee must share his knowledge with others while striving to explore new and better ways to perform his duties. This is management by collective wisdom. 3. The company is looked upon:as a lifetime education cen- ter or a training center for life. It is not just simply a place where you earn a salary. It is not simply a place where you can rise to a more prestigious position. These are only some of the fruits of good job performance. There are various opinions about the nature of man, whether he is fundamentally good or evil, and whether he can be trusted or not. If, however, a business manager hopes to educate his subordinates to bring out the best in them, he must assume that people are worthy of his trust and he must give them as much responsibility as possible. 27PROJECT CONSTRUCTION MANAGEMENT Regardless of how talented a manager may be, there is a limit to how much he can do by himself. No significant level of business success can be achieved without utilizing the collective wisdom and talent of all employees. By being entrusted with greater responsibilities, employees quickly develop the capacity to assume greater responsibilities. 1-18 Directing People on the Job To get your people to follow as you want them to do promptly, and willingly, learn the art and techniques involved in giving orders effectively and practice using them correctly until you become skilled in giving orders effectively. Before you can expect to give orders effectively, you must understand exactly what an order is and the different kinds of order you can use. What is an Order? An order is a specific message conveyed by a leader to a fol- lower for the purpose of influencing the follower to take desired action. Orders are either verbal or written. When to use verbal orders? 1. When the order is simple and the message can be clearly heard. 2. When privacy is important 3. When the follower is intelligent and reliable 4. When a demonstration is involved. When to have written orders? 1. When precise figures or complicated details are involved 2. When orders must be passed on to someone else. 3. When the workers involved are slow to understand and forgetful 4. When you want to hold the receiver strictly accountable 28———— ORGANIZATION AND MANAGEMENT 5. When particular sequence must be followed exactly 6. When a notice board can be suitably used 7. When you are quoting general instructions on higher au- thority 8. When a record is desirable, perhaps the order may need to be referred to in the future. Whether verbal or written, every order will fall into one of four distinct categories such as 1. A request 2. A suggestion 3. Asking for volunteers 4. A direct order Request. Here the leader asks the follower to act as the leader wishes. James, would you close the door please? You should use a request whenever you want specific action from the people like these: a. Anyone who is interested in his work. An older person, touchy. Someone who welcomes responsibility Someone who is interested in advancement A group of experienced personnel with good morale or Someone whose initiative you want to develop. eae There is a lot of value to be gained from the use of carefully phrased suggestions. Asking for Volunteers. The leader explains what is to be done and asks for volunteers to do it. You should ask for volun- teers for: 1. Jobs that are dangerous or disagreeable 2. For extra heavy workPROJECT CONSTRUCTION MANAGEMENT 3. For jobs that require overtime 4. When you want a skilled worker to do a special unskilled job: Many managers and supervisors have never thought of asking for volunteers, or using request or suggestions They have just been telling people what to do. Direct Order or Command. This is the last alternative. One should only use a direct order under the following cir- cumstances. In case of danger or extreme urgency When haste is important With lazy and indifferent workers, or chronic objectors For careless workers When all other methods have failed repeatedly UbRwWNe Have you noticed that the type of employee with whom you need to resort to direct orders is usually low quality with low morale? If you have such people, better ask yourself why you have them. One thing stands out very clearly. The way an order is phrased makes a lot of difference. Here are some guiding prin- ciples on how to Phrase orders effectively. It should be. 1. clear 3. concise 2. complete 4. acceptable To make an order clear, phrase it in simple terms and repeat anything that might be forgotten or misunderstood. To make an order complete, answer all the questions who, what, how, when, where and why. To make an order concise, is to make it short enough for the receiver to be able to repeat it to Prove that he received it fully 30ORGANIZATION AND MANAGEMENT To make an order acceptable is to ensure that the receiver will readily act on the order as he sees it justified, practical tactful, challenging and accompanied by sufficient authority a. You make your order justified when you explain why the action must be taken. You convince the receiver that it is practical when you explain how it is to be done. This is automatically done if you make the order complete b. To make your order tactful, you deliver it in a way that will not adversely affect your relationship with the re- ceiver. Think of his emotional reactions rather than your own. c. To make the order challenging, present it to him in a way that makes him see it is a worthwhile challenge to his knowledge, skill and experience. This will help him enjoy carrying out your order. d. Give sufficient authority. This is very important Whenever you give an order, make sure it is accompanied by suffi- cient authority by giving the receiver enough authority to enable him to carry out the order without being frustrated by the refusal of others to cooperate: To make sure you that you constantly give orders which are clear, complete, concise and acceptable, always remember that every order has three meanings: 1. The meaning you think you convey 2. The meaning you do convey. directly and by implication 3. The meaning the receiver thinks you convey Only when you have clearly in mind just’ what an order is, the different kinds of order you can use, and what an order re- quires to be effective, can you clarify the objectives of a particular order in your mind and decide on the kind of order you will use to achieve this objectives. 31PROJECT CONSTRUCTION MANAGEMENT 1-19 How to Give Effective Orders The way to give orders effectively, and carn yourself a repy- tation as Compelling Leader, you must; Clarify your objective Obtain favorable attention Make it simple and specific Phrase it tactfully for best results Explain why it should be done your way Learn how much information and guidance he needs Let him have it Inspire his confidence in order 9. Note his readiness to act 10. Give him faith in his ability to carry it out CIAWRWNE you and the correctness of your Obtain favorable attention Your main objective is to get him to do what you want him to do and like it. To achieve this, you must get his interested attention so that he will receive and correctly understand the complete order. Request and sugges- tions make it much easier for a Person to like doing what you want him to do than a direct order. Make it simple and specific. The order will only be clear and concise when it is simple and specific. If he does not do just as you want, it is at least as much your fault as his. Phrase it tactfully for best results. Choose the most suit- able kind of orders and phrase it in the way that will produce the desired effect. Explain why it should be done your way. Even they don’t fully agree with the reasoning involved, they appreciate being told about it. They like to be treated as human being and resent inhuman treatment ordered to do things they don’t understand. 32ORGANIZATION AND MANAGEMENT Let him have it. Give the information and guidance he needs as clearly and concisely as possible. Make sure you in- spire his confidence in you and the correctness of your order. Note his readiness to act. Watch his reaction to your order to see whether he has understood it correctly and is ready to act on it. Give him faith in his ability to carry it out. If there is any difficulty involved in his carrying out your order, he will per- form at his best when he believes in his ability to do it. Show your faith in his ability. If you have any doubts about his com- petence, keep them to yourself. 1-20 The Knowledge Workers The most important resource in any organization is the hu- man resource. Whatever the industry the success of any busi- ness depends on the flexibility resourcefulness and innovation knowledge workers bring to the firm. The report states that innovation is vital to companies sur- vival in the current Asian crises, characterized by a highly com- petitive and rapidly evolving business environment and that a new breed of worker called the knowledge worker is central to innovation. They are key to competitive differentiation. Knowl- edge work is complex and includes a high degree of uncertainty and ambiguity. It also requires employees or staff to exercise high degrees of judgment and interpretation. Increasingly, it also requires high degrees of teamwork as flexible teams of di- verse workers are brought together to solve problems. Organizations are operating in a new post industrial society in which knowledge is crucial. Companies recognized that knowledge based economies will expand and knowledge work- ers will become their most valuable assets. A company’s ability 33PROJECT CONSTRUCTION MANAGEMENT to innovate, predict customer needs, and implement new busi- ness management technologies. Appropriate management in- cludes allowing employees to explore and develop their own skills and expertise in such a way that a company’s business will prosper. The report challenges managers in the Asia Pacific to release the potential of their knowledge workers by’ 1. Acknowledging that knowledge workers are different 2. Accepting that traditional command and control methods of management are outdated and inappropriate. 3. Creating new ways of organizing work suitable for knowledge working, 4. Ensuring the right backup systems are provided which take into account the motivations and values of knowl- edge workers. Knowledge Workers and Manual Workers According to Drucker, for manual worker, we need only effi- ciency, that is, the ability to do things right rather than the abil- ity to get the right things done. The manual work can always be judged in terms of quantity and quality of a definable and dis- crete accomplishment. Effectiveness should be a habit; that is, through a complex of practices which could be learned. Therefore, there is no reasons why one with normal endowment should not acquire compe- tence in any practice. What is needed to be effective is compe- tence. What is needed are scales for,measurement. If a man wants to be considered responsible for his contribu- tion, he has to concern himself with the usability of his product and that is, his knowledge. The knowledge worker is the one factor of production through which the highly developed societies and economies of 34ORGANIZATION AND MANAGEMENT today. Knowledge worker is not defined by quantity, neither is knowledge defined by its costs. Knowledge work is defined by its results. The knowledge worker is not to be supervised closely or in detail. He can only be helped. One cannot be sure what the knowledge worker is thinking and yet thinking is his specific work. It is his job. There is an old saying that the greatest wis- dom not applied to action and behavior is meaningless data. Therefore, knowledge worker must do something, which a man- ual worker need not do. Most brilliant men are often not effective. They failed to re- alized that brilliant insight is not by itself achievement. They have forgotten that insights become effectiveness only through hard systematic work. Intelligence, imagination and knowledge are essential resources, but only effectiveness converts them into results. Working on the right things is what makes knowledge worker work effective. This is not capable of being measured by any of the meter stick for manual worker. Knowledge worker do not produce a thing. He produces good ideas, information and concepts He is specialist. He can as a rule, be effective only if he has learned to do one thing very well, that is, what he has specialized. His accomplishment has to be put together with the accomplishment of other specialists to produce a good result. Advances Deliver Results ces deliver business results. Some com- Management advan é panies such as Samsung have proven that radical change is pos- sible. Lee Hun Hee chair of Samsung focused on nurturing crea- tivity and innovation in the corporate culture while simultane- ously doing away with the hierarchical style of management 35\ PROJECT CONSTRUCTION MANAGEMENT Lower level managers gained more decision making respon- sibilities and workers at all levels were encouraged to develop new skills or interests, even unrelated to their specific job re- sponsibilities. The result of this restructuring program made Samsung the leading force in the electronics industry that is to- day. Likewise, Asian companies realized that knowledge economies based on knowledge work and workers will be the platform for future prosperity and growth.